West Indies Petroleum (WIP) Limited, a leading energy company based in Jamaica, is positioning its subsidiary, WIP Terminal, to capitalize on the booming cruise industry. With the cruise sector rebounding from pandemic setbacks, WIP sees significant potential in the growing demand for marine fuel, particularly as more ships are expected to navigate the Caribbean.
Bunkering, the process of refueling ships, is a key area WIP Terminal is keen to expand into, with a focus on cruise liners making stops in the region. The resurgence of cruise travel, which saw 31.7 million passengers in 2023—up from 29.7 million in 2019—presents an opportunity that the company intends to seize. Projections for 2024 are even more promising, with the industry expected to serve 34.7 million passengers, according to Cruise Lines International Association data.
Charles Chambers, CEO of WIP Terminal, highlighted the company’s strategic advantage in the Caribbean. “Our location and capacity position us perfectly to meet the increasing fuel needs of cruise ships. With the resurgence in cruise activity, the timing couldn’t be better for us to scale up our bunkering operations.”
WIP Terminal has facilities with significant fuel storage capacities—650,000 barrels in Old Harbour and 100,000 barrels in Ocho Rios. Both locations are directly connected to docking facilities, making them prime spots for refueling operations. Chambers believes this central positioning within the Caribbean shipping lanes is a major competitive edge.
In addition to cruise ships, WIP Terminal also sees potential growth in providing fuel to cargo and container ships that frequent the region’s ports. The company is focusing on partnerships that will secure more cost-effective fuel supply lines and more efficient delivery methods, allowing it to offer competitive prices to both cruise liners and cargo vessels. Chambers is optimistic that these developments will attract more ships to refuel in Jamaica, rather than in competing ports like Panama.
Chambers also pointed out a shift in the cruise industry’s demographics as a potential driver of increased fuel demand. “We’re seeing a younger crowd gravitating towards cruises, and that’s great news for the Caribbean. A younger, more adventurous demographic could lead to expanded itineraries, increasing demand for our services.”
To support this growth, WIP Terminal is undergoing a reorganization aimed at enhancing its operational efficiency and financial capabilities. This includes forging new banking relationships to offer credit terms to cruise operators, which often buy fuel on credit.
“Credit lines are essential in this industry,” Chambers explained. “By offering credit, we can attract more business from cruise and container lines, enabling us to sell fuel at more competitive rates.”
Looking ahead, WIP Terminal plans to extend its footprint beyond Jamaica. Currently operating out of four Jamaican ports—Kingston, Montego Bay, Falmouth, and Ocho Rios—the company aims to expand into another Caribbean territory by early 2025. Chambers was tight-lipped on the specifics but hinted at imminent developments.
Meanwhile, West Indies Petroleum Limited, the parent company of WIP Terminal, is preparing for its next big move—listing on the Jamaica Stock Exchange. As part of its restructuring efforts, WIP has taken steps to amend its memorandum of association and is preparing to issue shares denominated in Jamaican dollars. With 11.16 billion shares issued, the majority (79.9%) is held by WIP Limited, while a smaller portion (20%) is owned by World Energy Solutions Limited.
Despite the promising opportunities, WIP Terminal’s financial performance showed mixed results in 2023, with a 13.3% increase in revenue to US$7.57 million but a 24% dip in net profit to US$2.1 million. However, the company is banking on the cruise industry’s continued recovery and expansion to fuel its growth in the coming years.
As the cruise sector evolves, WIP Terminal is looking to evolve alongside it. “Our current infrastructure gives us a strong foundation,” Chambers said. “But we’re exploring additional ways to meet the growing and changing demands of the cruise industry. We believe there’s a lot more growth ahead, and we’re excited to be part of it.”
